EPAM Systems Inc (EPAM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.07% | 30.68% | 33.78% | 34.74% | 34.78% |
| Operating profit margin | 10.76% | 12.09% | 14.46% | 14.29% | 13.27% |
| Pretax margin | 11.52% | 10.70% | 14.22% | 14.26% | 13.13% |
| Net profit margin | 8.96% | 8.85% | 12.84% | 12.32% | 11.44% |
EPAM Systems Inc's profitability ratios have exhibited a general trend of decline over the past five years. The gross profit margin, a key indicator of a company's operational efficiency, has decreased from 35.12% in 2019 to 30.57% in 2023. This may suggest that EPAM Systems Inc has faced challenges in maintaining its cost of goods sold in relation to its revenue.
The operating profit margin, which shows the company's ability to control its operating expenses, has also shown a downward trend, declining from 13.20% in 2019 to 11.24% in 2023. This indicates that EPAM Systems Inc has experienced rising operating costs relative to its sales.
The pretax margin, reflecting the company's ability to generate profits before accounting for taxes, has fluctuated over the years but showed an increase in 2023 compared to 2022. However, it remains lower than the levels seen in 2020 and 2021. This may indicate that while EPAM Systems Inc has managed to improve its pre-tax profitability in the most recent year, it still faces challenges in maintaining consistency in this regard.
The net profit margin, which represents the company's bottom-line profitability after accounting for all expenses and taxes, has experienced a declining trend from 11.38% in 2019 to 8.89% in 2023. This suggests that EPAM Systems Inc's ability to translate revenue into bottom-line profits has weakened over the years.
In summary, EPAM Systems Inc's profitability ratios have shown a general decline over the five-year period, indicating potential challenges in maintaining operational efficiency, controlling costs, and improving bottom-line profitability. Further analysis of the company's operational and financial strategies may be necessary to address these trends and sustain long-term profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.52% | 14.29% | 15.39% | 13.94% | 13.49% |
| Return on assets (ROA) | 9.58% | 10.46% | 13.67% | 12.02% | 11.63% |
| Return on total capital | 14.33% | 18.91% | 21.54% | 18.89% | 18.68% |
| Return on equity (ROE) | 12.02% | 13.97% | 19.37% | 16.50% | 16.36% |
EPAM Systems Inc's profitability ratios have shown fluctuations over the past five years.
- Operating return on assets (Operating ROA) has slightly decreased from 15.39% in 2021 to 12.11% in 2023. This ratio indicates the company's ability to generate operating income from its assets, indicating a decrease in efficiency in recent years.
- Return on assets (ROA) has also shown a declining trend, decreasing from 13.67% in 2021 to 9.58% in 2023. This ratio measures the company's overall profitability in relation to its total assets, reflecting a decrease in overall profitability over the past three years.
- Return on total capital has also experienced a decrease from 21.41% in 2021 to 15.07% in 2023. This ratio reflects the company's ability to generate returns for both equity and debt holders, showing a decreasing trend in generating returns for its capital providers.
- Return on equity (ROE) has shown a fluctuating pattern, with a decline from 19.37% in 2021 to 12.02% in 2023. ROE measures the company's ability to generate profits from shareholders' equity, indicating a decrease in the company's profitability in relation to shareholders' investment.
Overall, the profitability ratios of EPAM Systems Inc have displayed mixed performance, with a general trend of decreasing profitability indicators in recent years. Further analysis would be required to understand the specific factors driving these changes and to assess the company's future profitability prospects.